Investing.com - European stocks opened sharply lower lower on Tuesday, as market sentiment weakened following news of a new ballistic missile test by North Korea.
During European morning trade, the EURO STOXX 50 retreated 1.08%, France’s CAC 40 lost 1.04%, while Germany’s DAX 30 tumbled 1.13% by 03:35 a.m. ET (07:35 GMT).
Sentiment was hit after North Korea fired a missile that flew over northern Japan, in the latest act of provocation by Pyongyang.
Japan's Prime Minister Shinzo Abe said that the missile posed a grave threat to his country. The U.S., Japan and South Korea asked for a United Nations Security Council meeting to discuss the test.
Market participants also continued to monitor developments in the U.S. after Tropical Storm Harvey hit Houston, Texas, and many oil refineries in the U.S. Gulf Coast.
Energy-related stocks were broadly lower, as Italian oil and gas major Eni declined 0.69% and France's Total SA (PA:TOTF) dropped 0.72%, while Spanish rival Repsol (MC:REP) retreated 0.96%.
Financial stocks added to losses, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) tumbled 1.44% and 1.39%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) lost 1.07% and 1.60%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) declined 0.23% and 0.42% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) retreated 0.66% and 0.62%.
Elsewhere, Renault (PA:RENA) shares were down 1.57% even after news the automaker and its alliance partner Nissan Motor will be setting up a new joint venture with Dongfeng Motor to design and build electric cars in China.
In London, FTSE 100 tumbled 1.02%, as U.K. lenders tracked their European counterparts sharply lower.
Shares in HSBC Holdings (LON:HSBA) dropped 0.67% and Lloyds Banking (LON:LLOY) lost 1.37%, while the Royal Bank of Scotland (LON:RBS) and Barclays (LON:BARC) plummeted 1.58% and 1.88% respectively.
Mining stocks were also broadly lower on the commodity-heavy index, as Glencore (LON:GLEN) retreated 0.85% and Anglo American (LON:AAL) tumbled 1.57%, while BHP Billiton (LON:BLT) plunged 1.87% and Rio Tinto (LON:RIO) dove 2.42%.
Oil and gas major BP (LON:BP) saw shares decline 1.35%, while rival company Royal Dutch Shell (LON:RDSa) lost 1.54%.
Meanwhile, gold miner Randgold Resources (LON:RRS) surged 3.44% as gold prices rallied amid fresh geopolitical tensions.
Provident Financial (LON:PFG) was also a top performer on the index, for a third consecutive session, with shares up 1.91% after the company late last week appointed Chris Gillespie as managing director of the home credit business, replacing Andy Parkinson.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.51% loss, S&P 500 futures signaled a 0.71% drop, while the Nasdaq 100 futures indicated a 0.85% slide.